A Harvard Business school study compared businesses founded by immigrants against businesses started by individuals born in the United States. The results of that study showed that immigrants create not only more businesses but also more successful ones. Businesses started by immigrants performed better in terms of job growth, growing faster and succeeding at a higher rate in the long term.[1] In fact, 43% of Fortune 500 companies were founded by immigrants or the children of immigrants.[2]
So, what makes immigrants more successful in running businesses?
1. Embracing risk
Studies show that immigrants display a higher willingness to take risks, one trait that benefits immigrants looking to start a new business.[3] The decision to move to a different country is a huge risk, as immigrants must leave family and friends behind. These individuals have to learn a new culture and often a new language. Starting a company in a foreign land is similarly risky. Research shows that twenty percent of new businesses fail during their first two years. That number jumps to 45% failing in the first five years.[4] This trend, however, does not affect the willingness of foreign nationals to seek better opportunities abroad. As a result, immigrant entrepreneurs start businesses at a higher rate than citizens born in the United States.
2. A growth mindset
To succeed in business, individuals must have a growth mindset, consistently working to better themselves and their business by working hard, coming up with good strategies, and taking input from others. The mindset that is required of immigrants is very similar. Immigrants leave their homes to build a better life for themselves. They don’t stay fixed in place; rather, they do what it takes to achieve the change they seek.[5]
3. Global readiness
Immigrants have experience and knowledge of cultures outside the United States. Especially in these days of the internet, this first-hand experience is crucial when starting a new operation domestically. People with global experience can accelerate their business’s growth and avoid many of the mistakes business owners without that knowledge make. [6]
4. Diversity and inclusion
Similarly to global readiness, immigrants improve a company’s diversity by bringing their unique experience and knowledge. Research shows that businesses with more diverse staff perform better financially. However, it is crucial that businesses not only hire a diverse team but ensure that everyone’s perspective can be considered in all aspects of the company. Due to their experience, immigrants tend to create a more inclusive workspace, hiring a more diverse staff and ensuring that everyone’s voice is heard.[7]
5. Adaptability
To live in a new country, learn a new culture, and often a new language requires constant adaptability. Immigrants have to reexamine every aspect of their lives to succeed in a new place. This skill is crucial in business, where it is survival of the fittest. Especially as a result of the pandemic, businesses have had to make huge shifts to survive. The skills that enable immigrants to be successful in a new country are the same skills that allow them to adapt to changes in the business climate. [8]
How Visa Business Plans Helps Immigrants
As thousands of entrepreneurs and their families can attest, Visa Business Plans often proves to be the critical difference-maker that has allowed them to achieve their dreams. So, if you want to start a business in the U.S., or are otherwise considering immigrating to America, call us to learn how we can steer you toward success
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in 4 different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
[1] https://hbr.org/2018/10/research-shows-immigrants-help-businesses-grow-heres-why
[2] https://www.ilctr.org/promoting-immigrants/immigrant-entrepreneurship/
[3] https://www.wbs.ac.uk/news/five-reasons-why-immigrants-make-great-entrepreneurs/
[4] https://payrofinance.com/50-of-small-businesses-fail-within-5-years-heres-why/#:~:text=Data%20from%20the%20Bureau%20of,to%2015%20years%20or%20more.
[5] https://hbr.org/2018/10/research-shows-immigrants-help-businesses-grow-heres-why
[6] https://hbr.org/2018/10/research-shows-immigrants-help-businesses-grow-heres-why
[7] https://hbr.org/2018/10/research-shows-immigrants-help-businesses-grow-heres-why
[8] https://hbr.org/2018/10/research-shows-immigrants-help-businesses-grow-heres-why
